OFF-GRID SOLAR FROM INDIA TO KENYA - Inclusive · PDF fileOFF-GRID SOLAR FROM INDIA TO KENYA ... This document is intended to present general information and does not ... The Moringa

OFF-GRID SOLAR FROM INDIA TO KENYA

Making off-grid solar energy systems more accessible to all

Orb Energy (Orb) is a leader in off-

grid solar energy systems in India.

With a US$ 2 mln common equity

investment from the Access to

Energy Fund, Orb expanded its

business to Kenya.

CLIENT CASE: ORB ENERGY


INDIA, KENYA

Client

Orb Energy Ltd.

Sector

Renewable energy

FMO INVESTMENT

FMO investment

US$ 2.0 mln

Total assets Orb

US$ 5.86 mln

Type of business

Design, manufacturing, and

retailing of off-grid solar

power systems and water

heaters


Total project size

US$ 4.4 mln

Financial products used

Equity


An investment for ‘unelectrified’ and

‘under-electrified’ households

• Lack of access to electricity is an urgent

problem in both countries where Orb is

active: India and Kenya

• Orb was founded by former executives of

Shell’s solar business unit following the

decision of Shell to discontinue its

investments in solar energy

• Orb offers a unique approach to the solar

market by reaching out to the poorest

areas, as well as to the wealthier regions

where power is inconsistent and/or very

expensive

IMPACT AND PERFORMANCE

3

596 JOBS SUPPORTED

(direct employees & franchise staff)

8.982 MWH OF POWER PRODUCED

(energy)

85.000 SYSTEMS SOLD TO DATE

Number of people reached (energy)


35.000 METRIC TONS OF CO2

AVOIDED PER ANNUM



Knowledge from India to Kenya

• With the investment, Orb is now replicating

its approach in Kenya, by adding 50

branches over the next 2 years

• Orb’s outreach to Kenya will contribute to

increased renewable energy supply to the

population and businesses

• The investment overcomes a common

issue that comes with off-grid solar

systems: high up-front costs that the poor

cannot afford

• Orb has developed a system with

microfinance institutions that directly

provides consumer finance loans. In this

way, the company makes the use and

benefit of off-grid solar devices more

accessible to a wider public

Overcoming the problem of high costs

THANK YOU

THANK YOU!

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Disclaimer

The information used in this document is strictly confidential. By acceptance of this document, the recipient agrees to

keep the information in this document confidential to such person. The information is neither to be disclosed to any other

person, nor copied or reproduced in whole or in part, without the prior written consent of Nederlandse Financierings-

Maatschappij voor Ontwikkelingslanden N.V. (“FMO”). The distribution of this document in certain jurisdictions may be

restricted and accordingly persons into whose possession this document may come are required to have themselves

informed of and to observe any such restrictions. This document is intended to present general information and does not

constitute an offer for, or an invitation to subscribe to or acquire, any interests in one or more investment funds and does

not constitute investment advice.

5

ADDRESSING CHILD MALNUTRITION AT SCALE

Financing a Green Field processing plant in Rwanda

“This joint venture demonstrates

the increasing role that business

can play in helping to solve the

world’s greatest challenges.”

Ute Schick, CEO of Africa Improved Foods


7CASE STUDY

RWANDA

Client

Africa Improved Foods

Holding BV

Sector

Agribusiness

Size

Green Field

FMO INVESTMENT

Investment amount

US$13 mln from the Infrastructure Development Fund

Year of investment

2015


The importance of ensuring adequate

nutrition

• Malnutrition in pregnant mothers and young

children is devastating for a child’s mental and

physical development.

• Hinders a child’s development, country’s

future productivity and growth.

Africa Improved Foods – scaling up

nutritional solutions for infants

• Established by Royal DSM, AIF is unique

partnership of private and public partners

• AIF will construct and operate a 45,000 tons

per year processing plant for fortified cereals.

• A significant portion will be sold to the World

Food Program and distributed to the most

vulnerable populations.

Product

Senior debt and equity



Food and nutrition security

8CASE STUDY

• Producing fortified cereals by sourcing

soybeans and maize locally from Rwandan

farming cooperatives,

• Offering 9,000 farmers a stable, sustainable

income for a proportion of their harvest.

• By 2017 the company aims to reach more

than 1 million people annually with adequate

nutrition.

230 jobs supported

Additional income opportunities for 9,000

farmers in Rwanda


Fortified food for infants

Support to agri-manufacturing and related

value chains in Africa

More than 700,000 children will get access

to fortified blended food annually,

supporting the prevention and treatment

of malnutrition among vulnerable

populations.

SUSTAINABLE AGROFORESTRY THROUGH PRIVATE EQUITY

Supporting small-scale farmers in developing economies

The Moringa Fund is focused on

creating economic benefits from

agroforestry for its investors and

local communities while contributing

to building environmental and social

resilience in land use.

CLIENT CASE: MORINGA FUND


LATIN AMERICA

AND AFRICA

Sector

Agroforestry

Total fund size

EUR 60 mln

FMO INVESTMENT

Investment Amount

EUR 10 mln

(EUR 5 mln for Africa fund

and EUR 5 mln for Latam

fund)


The potential of agroforestry

• The Moringa Fund combines forestry

activities with cattle ranging and food crops

• Globally agroforestry can address the

growing demand for sustainable agriculture

and forestry products

An innovative fund

• A highly innovative fund whose core

strategy is ecosystem restoration for the

benefit of small-scale farmers

• FMO supports the fund as a unique

partner for developing innovative impact

investments in the agriculture and the

forestry sector


Year of investment

2013

Financial product used

Private Equity



Development impact

11


Timber

Fruit trees

500-1000 jobs created per investment

Industrial tree crops


Biomass

AGROFORESTRY

Cattle ranging

• Positive environmental impacts by bringing

fertility to previously degraded land and

preventing erosion

• Trees and crops can be sold providing a

more stable income to local populations

• Forestry and agricultural proceeds are meant

for local markets which improves availability

and affordability of the products

• This funds fits well to FMO’s strategy

focusing on doubling our impact while halving

our footprint

• The success will help agroforestry become

an example of producing food and wood in a

positive impact manner

Documents

OFF-GRID SOLAR FROM INDIA TO KENYA - Inclusive · PDF fileOFF-GRID SOLAR FROM INDIA TO KENYA ... This document is intended to present general information and does not ... The Moringa